LG sets up second manufacturing unit in Pune

LG Electronics is setting up its second manufacturing unit in Pune. Maharashtra Chief Minister Sushilkumar Shinde in Ranjangaon performed the inauguration ceremony. The new setup, covering 50 acres of land, will have facility to manufacture color monitors, color televisions, air conditioners, refrigerators, washing machines and microwave ovens. The manufacturing capacity for color monitors would be 1 lakh units per year. The plant is scheduled to commence operations in October 2004.

LG Electronics, Korea Vice Chairman, SS Kim said that the LG India is the fastest growing operation in the group and therefore the company had taken the decision to establish another facility in India. He said that LG would be investing Rs 500 crore over the next five years. The Ranjangaon facility is expected to become the export hub for the group.

LG MD, KR Kim said that the Ranjangaon facility would manufacture high-end products such as the high projection TV, PDPs, large size LCD monitors and next generation mobile handsets as well.

Established in 1997 in India, LG India has generated revenues worth Rs 13,000 crore becoming a benchmark for other LG operations, he said. Consul General of Korea in Mumbai Don Chung said that Korea could be the ideal partner for India since it had strength in hardware manufacturing and India is an IT power. Korea has 343 projects running in India.

Debunking arguments that Maharashtra had lost out its premier position as an industrial destination as opposed to Bangalore and Hyderabad, Shinde claimed that the industrial climate in the state had improved to a great extent. He said that the state is taking all the necessary steps to attract foreign investment.

"The new incentives announced in the state IT policy are a step towards this direction," Shinde said. He added that although he was criticized for announcing the new incentives on sales tax and octroi, these steps were necessary to ensure that Maharashtra offered immense business opportunities to investors. Shinde said that Maharashtra is now in a take off mode. A high level delegation would be leaving for the US next week in order to woo investors to
Maharashtra.

CYBER NEWS SERVICE

PUNE